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Ripple CEO Clears FUD Around “XRP Dumping” in an Interview with Pomp

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Co-founder & Partner at Morgan Creek Digital Anthony Pompliano, aka Pomp recently interviewed Ripple CEO Brad Garlinghouse. In the interview, Garlinghouse explained the monthly XRP sales and cleared the FUD around them. 

Why does Ripple Sell Millions in XRP Every Month

In the interview, one round was dedicated entirely to the monthly XRP sales, and Pomp began the session by asking Garlinghouse about how he viewed the XRP sales. Garlinghouse began by saying that people lose sight of the fact that they (Ripple) were “the most interested party in the success and health of the XRP ecosystem” as they owned a lot of XRP. He further said that anything they did that was not good for the XRP ecosystem was, therefore, not good for them, thereby justifying that the XRP sales were not harmful to the XRP ecosystem.

He then revealed the details of the mechanism of the XRP escrow accounts. According to Garlinghouse, two years ago, one of the biggest concerns around the XRP markets had been that since Ripple owned a lot of XRP, what would happen if Ripple decided to sell it off. To address this concern, Ripple locked up its XRP in 55 contracts in cryptographically signed escrows on the XRP Ledger. The escrows became unlocked once a month for 55 months, meaning one escrow unlocked each month for 55 months. There were 1 billion XRP’s in each account, which means that there were 55 billion XRP’s at the time Ripple created the escrows.

Pomp then asked about what happened to the XRP’s when they were released? To this, Garlinghouse respondedAdvertisement

“We could do whatever we want with it.”

Garlinghouse further elaborated on how the XRP’s released have been used so far –

“We use some of its for deals… we sell some programmatically…”

Garlinghouse explained the two ways in which XRP was sold – through over-the-counter trades and programmatically. In OTC trades, it was mostly crypto speculators like crypto hedge funds which approached Ripple. Ripple has tried to engage the market in a constructive way by selling XRPs through OTC trade and programmatically at 10 basis points of daily market activity. The mistake they had been making was that they were calculated on the basis of data provided by CoinMarketCap, a website whose reputation has suffered for reporting fake volume. Garlinghouse and Pomp both agreed that CryptoCompare Top Tier (CCTT) was much more trusted and reliable for understanding the actual volume of XRP liquidity.

What Garlinghouse seemed to be implying was their intention with XRP sales was not to manipulate its price, rather, they had miscalculated the amount to be sold by factoring in incorrect data. Garlinghouse further said that they had nothing to do with 99.9% of the XRP trading. According to the reports published by Ripple, it sold XRP worth $170 MM in Q1 2019 and $250 MM in Q2 2019.

What Happened to the Unsold XRP?

According to Garlinghouse, a major portion of the XRPs went back into new escrows. He said –“80% of it goes back.”

Pomp asked the Ripple CEO about what they needed the money for that came from XRP sales. To this, Garlinghouse responded that they were reinvesting in the company, and he gave the example of Moneygram which Ripple had recently entered into a strategic partnership with Moneygram and invested $30 MM in the common stock of the company.

Pomp asked the Ripple CEO about what they needed the money for that came from XRP sales. To this, Garlinghouse responded that they were reinvesting in the company, and he gave the example of Moneygram which Ripple had recently entered into a strategic partnership with Moneygram and invested $30 MM in the common stock of the company.

Selling Restrictions on XRP Holders

An interesting point that Pomp touched upon was the restricted selling agreements on those who bought XRP through OTC trades. To this, Garlinghouse said, “Sometimes yes.” He further added that with these restricted selling agreements, what Ripple had done was healthier than the ETH and Bitcoin environment had because there were no restrictions there stopping whales from dumping the tokens.

Pomp tried to find out what the selling restrictions were on a customer basis or a more generalized basis, but Garlinghouse refused to answer this. He said-

“We are already 10 or a 100 times more transparent than anyone else in the crypto community and we’ve got a tact for doing that. And, I think you just asked me to be more transparent. I think I’m going to pass.”

Garlinghouse simply explained that they were trying to do smart, strategic things to leverage their balance sheet and catalyze the developments in the ecosystem. Pomp conceded that people trying to find out all this information was too much. It was like saying that Ripple should open-source their contracts.

Are there any Discounted Deals for OTC customers?

When asked about discounts on OTC sales, Pomp tried to guess if the discount was around 50%. Garlinghouse immediately corrected him saying that it was more like 5%. His rationale behind this figure of discount was that he thought of XRP as a currency. He remarked –

“Would you sell a dollar for 50 cents?”

Do you think that Garlinghouse’s disclosures will help strengthen trust around Ripple and XRP in the crypto community? Let us know what you think about the Ripple CEO’s responses in the comments below!

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Top 20 Coins Like XRP and ETH Showing Signs of Life

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Ripple’s XRP is leading the way as many of the industry’s top 20 cryptocurrencies are beginning to experience solid gains over the early morning and afternoon hours.

XRP, Bitcoin and Ethereum Are Fighting for Their Lives

At press time, XRP has built itself up to 28 cents per unit – a near five-cent boost since it was first struck by the crypto bloodbath of last September. Bitcoin is also holding its own and is currently trading at just shy of $8,450. This is a spike of more than $100 in just the last 24 hours alone, and Ethereum has also risen to $183. This is a two dollar rise since yesterday.

While it’s probably too early to say whether the crypto space is entering a “rally phase,” it’s a positive sign to see so many currencies working to bring themselves out of the doldrums. Many coins and tokens are refusing to give into present resistance and are fighting against the negative odds that have been set against them.

One of those odds comes in the form of the Securities and Exchange Commission’s (SEC’s) recent rejection of the Bitwise bitcoin exchange-traded fund (ETF), which many considered to be the last possible chance a bitcoin ETF had of being approved. With this latest rejection, however, bitcoin has managed to hold its position and has not been subjected to further falls, another potential insinuation that perhaps the coin is learning to mature.

Christel Quek – chief commercial officer and co-founder of BOLT Global, explains:

Bitcoin and Ethereum moved higher the past couple of days, strengthening in the $8,000s mark – despite yet another setback from the US Securities and Exchange Commission. The SEC rejected another attempt at a bitcoin exchange-traded fund (ETF) over concerns of transparency issues and market manipulation. Crypto markets have been closely watching each ETF application for any signs of progress as it is hoped that a US bitcoin ETF would provide traders and investors a more formal access to the cryptocurrency than going through the various crypto exchange platforms.

Is Bakkt Responsible for This?

Perhaps these sudden price surges can be attributed to Bakkt’s sudden boost in business. As reported yesterday by Live Bitcoin News, the institutional platform – after experiencing a mediocre reception in the beginning – has now traded roughly $2 million in bitcoin futures contracts over the past two weeks. Despite a slow start, the enterprise appears to be making a lot of headway with institutional investors.

This could potentially be the kick that bitcoin needs with the SEC. As both Bakkt and ETFs are designed for institutional players, the SEC may reconsider their rejections in the future granted Bakkt continues to do well. Thus, perhaps crypto-based trading firms like Bitwise shouldn’t be discouraged from potentially submitting applications later down the line.


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Ripple Forecast and Analysis October 14 — 18, 2019

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Ripple XRP/USD complete the trading week at 0.2644 and continue to move as part of the correction and the bearish channel. Moving averages indicate a bearish trend. At the moment, we should expect an attempt to continue the upward correction and test the resistance area near 0.3165. Where again we should expect a rebound and continued fall of the cryptocurrency to the area below the level of 0.1305.

Ripple Forecast and Analysis October 14 — 18, 2019

In favor of the fall in XRP/USD quotes in the current trading week October 14 — 18, 2019 a test of the downward trend line on the relative strength index (RSI) will be made. The second signal will be a rebound from the lower boundary of the ascending channel. Cancellation of the Ripple cryptocurrency fall option will be a strong growth and a breakdown of the 0.3675 area. This will indicate a breakdown of the resistance area and continued growth of XRP/USD quotes with the target above the level of 0.4705. A confirmation of the fall of the cryptocurrency will be a breakdown of the support area and closing of quotations below the area of ​​0.2145.

Ripple Forecast and Analysis October 14 — 18, 2019

Ripple Forecast and Analysis October 14 — 18, 2019 implies an attempt to test the resistance level near the area of ​​0.3165. Where can we expect the continuation of the fall in quotations with a potential target at the level of 0.1305. An additional signal in favor of reducing Ripple will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of falling cryptocurrency will be a breakdown of the area of ​​0.3675. This will indicate a continuation of the rise with the target above the level of 0.4705.

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Top 3 Kryptowährungen der Woche: ChainLink, Binance Coin und Ripple

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Es liegt eine insgesamt erfreuliche Woche hinter den Anlegern am Kryptomarkt. Viele der 20 wertvollsten Kryptowährungen der Welt notieren gegenüber der Vorwoche im Plus. Einen besonders starken Kursanstieg verzeichneten in dieser Woche die folgenden Altcoins:

Euphorie herrscht derzeit bei Anlegern von ChainLink. Der Altcoin hat eine fabelhafte Entwicklung genommen und kommt in der Sieben-Tage-Analyse auf einen Kursanstieg von rund 30 Prozent. Von 2,08 Dollar am vergangenen Sonntag ist der Kurs inzwischen auf 2,56 Dollar gestiegen. Allerdings ging es am zurückliegenden Handelstag wieder leicht abwärts. Das Tagesminus lag bei knapp vier Prozent. Gegenüber dem Wochenhöchststand von 2,92 Dollar am 9. Oktober ist der Altcoin-Kurs wieder um mehr als 12 Prozent abgesackt. Dennoch bleibt es eine überaus positive Woche für Anleger. Die Marktkapitalisierung ist auf rund 931 Millionen Dollar angestiegen. Im Krypto-Ranking belegt ChainLink nun Platz 14.

Platz 2: Binance Coin

Besonders starke Kurszuwächse verzeichnen in dieser Woche auch Anleger des Binance Coin. Derzeit notiert der BNB-Kurs bei 17,95 US-Dollar und erreicht damit zugleich den Bestwert der gesamten Woche. Gegenüber knapp 15 Dollar am vergangenen Sonntag ist der Kurs um mehr als 14 Prozent gestiegen. Auch das Momentum spricht für das Investment. Innerhalb der letzten 24 Stunden ging es um mehr als 5,5 Prozent nach oben. Mit einer Marktkapitalisierung von rund 2,79 Milliarden Dollar rangiert Binance Coin auf dem achten Platz. Die Kapitaldecke ist allein binnen des letzten Tages um rund 143 Millionen Dollar angewachsen.

Platz 3: Ripple

Auch Ripple-Anleger dürfen sich diese Woche entspannt zurücklehnen und ihre wachsende Rendite beobachten. Von gut 0,25 Dollar steigt der Kurs nun in Richtung 0,28 Dollar. Derzeit beträgt das Plus in der Sieben-Tage-Betrachtung 10 Prozent. Damit performt Ripple derzeit besser als die davor platzierten Kryptowährungen Bitcoin und Ethereum. Die Marktkapitalisierung ist auf mehr als 12 Milliarden Dollar angewachsen. 200 Millionen Dollar Kapital sind in den letzten 24 Stunden hinzugekommen.

Source kryptoszene.

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